Watch a lump sum grow, and see why compounding beats simple interest.
Understand how compounding makes money grow exponentially over time, and how rate, frequency, and horizon affect the outcome.
Raise the annual rate from 5% to 10%.
Before you act, predict what will happen. Does the final balance simply double, or more than double? Then do it — did your prediction match what happened?
Balance over time
Compound interest curves upward; simple interest is a straight line.